Did you ever apply for a loan at a bank? And diligently followed the loan procedure? But in spite, the loan application got rejected? Reason being-The Low-CIBIL score. Read on to learn how your credit score is calculated and how you can get a loan even if your score is low.
What is a CIBIL Score?
A CIBIL score or a credit score is a three-digit summary of your credit history. The score is calculated by examining your CIR (Credit Information Report) or credit payment history. Your CIBIL score is determined by your repayment history, credit balance, how prompt and timely you are with your repayments, the number of your outstanding debts, the length of your credit history, your EMI to income ratio and your credit mix. Your bank needs this score to not only decide to sanction or deny your Home Loan, but to also estimate the loan amount and the interest to be charged.
Want to know your exact CIBIL score? Visit www.cibil.com. Your score will range between 300 and 900. According to experts, 79% of loans get sanctioned if the minimum credit score is 750.
Banks reject your loan application due to a bad credit score or lower salary. But have you searched for alternative lending options and came across Peer-to-peer lending.
Peer-to-peer (P2P) loans are catching the attention of youngsters across metros. Peer-to-peer lending is also another option to consider if a low CIBIL score is standing in your way to secure that much-needed loan. It matches investors with borrowers and it is an online service with more cost-effective than traditional financial institutions. Investors can hope to make higher returns and borrowers can borrow money at an interest that is best suited for them. Easy and quick disbursements are not the only drawing points for Peer-to-peer companies. The rate of interest offered on the online lending platform is another major draw.
Online Peer-to-peer financing platforms like LenDenClub not only offers personal loans for low credit score profiles but also provides them faster than banks and NBFCs. Moreover, you can rebuild your credit score with a Peer-to-peer personal loan while taking care of your urgent financial requirements at the same time.
To apply for a personal loan with LenDenClub, click here.